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Gold Medical Supply Company and Home & Hospice Care,Inc.,enter into a contract for a sale of health care equipment and supplies.Under either a shipment contract or a destination contract,the seller must​ 


A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​place the goods into the hands of a carrier. 
D)  ​give the buyer any necessary documents of title.

E) All of the above
F) A) and C)

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Bayou Boats,Inc.,contracts for the sale of seven swamp boats to Eventide Fishing Tours.Bayou repudiates the contract.Eventide's recovery is measured at the time 


A)  ​Bayou advertised the goods. 
B)  ​Eventide ordered the goods. 
C)  ​Eventide learned of the breach. 
D)  ​Bayou knew that it would repudiate the contract.

E) All of the above
F) B) and C)

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If goods identified to a contract are destroyed through no fault of either party,both parties are excused from performance. 

A) True
B) False

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True

Under the UCC,a seller's tender of goods that do not conform in every way to a contract is still a valid tender. 

A) True
B) False

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Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Far Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of delivery is in​ 


A)  ​California. 
B)  ​Delaware. 
C)  ​Florida. 
D)  ​Hawaii.

E) B) and C)
F) A) and B)

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The obligation of good faith underlies every contract under the Uniform Commercial Code. 

A) True
B) False

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Mineral Resource Company contracts to provide several manufacturers with tin.When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts,the distributor​ 


A)  ​can substitute some other material for the tin. 
B)  ​is excused from the performance of its contracts. 
C)  ​is liable for breach of contract. 
D)  ​must still supply the tin needs of its customers.

E) A) and B)
F) All of the above

Correct Answer

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Elegant Carpets,Inc.,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must​ 


A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​inspect the goods before shipping them. 
D)  ​place the goods into the hands of a carrier.

E) A) and D)
F) A) and C)

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D

Commercial Leasing Corporation and Quarry Construction Company enter into a contract for a lease of three excavators.Under the perfect tender rule,Commercial Leasing must ship or tender goods to the lessee that​ 


A)  ​approximately conform to the contract description. 
B)  ​entirely conform to the contract description in most ways. 
C)  ​conform to the contract description in every way. 
D)  ​substantially conform to the contract description.

E) A) and B)
F) B) and C)

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Kim's Pony Rides orders ten saddles from Little Horse Saddles,Inc.The sales contract states that if the saddles are defective,Kim's will allow Little Horse Saddles to repair or replace them instead of rejecting the shipment.When the saddles arrive,they are defective.In this case,the perfect tender rule​ 


A)  ​does not apply. 
B)  ​applies to both parties. 
C)  ​applies only to Little Horse Saddles. 
D)  ​applies only to Kim's Pony Rides.

E) A) and C)
F) A) and B)

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Sally's Sweet Fruits contracts with Fruits to You,Inc.for a delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking,a trucking company with refrigerated trucks.On the day of delivery,the refrigeration units on Keep Kool's trucks are not working.Fruits to You​ 


A)  ​may ship the goods to Sally's using another trucking company with refrigerated trucks. 
B)  ​must refund Sally's money and cancel the contract. 
C)  ​must wait to ship the strawberries until Keep Kool has fixed its trucks. 
D)  ​must ship the goods through a different carrier and pay Sally incidental damages.

E) All of the above
F) None of the above

Correct Answer

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When a seller refuses to deliver goods that are unique,a buyer can obtain specific performance. 

A) True
B) False

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True

Sof' Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Sof' tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may 


A)  ​await performance, sue Sof', or suspend its own performance. 
B)  ​only await Sof's performance for a commercially reasonable time. 
C)  ​only sue Sof' for breach of contract. 
D)  ​only suspend its own performance.

E) A) and D)
F) None of the above

Correct Answer

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On May 1,Garage Prefabricators,Inc.,agrees to sell four portable garages to Hiway Truck Service Center.Five days later,Hiway refuses delivery and cancels the contract.Garage Prefabricators is entitled to 


A)  ​force Hiway to accept the garage. 
B)  ​recover any damages from Hiway but not resell the garage. 
C)  ​resell the garage and recover any damages from Hiway. 
D)  ​resell the garage but not recover any damages from Hiway.

E) A) and B)
F) None of the above

Correct Answer

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Until the time for performance under a contract expires,the seller has a right to cure. 

A) True
B) False

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Unless the parties agree otherwise,the buyer or lessee has an absolute right to inspect the goods before making payment. 

A) True
B) False

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Under the perfect tender rule,if tender is not perfect,the seller is obligated to try again. 

A) True
B) False

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Owen and Pablo enter into a contract for a sale of fifty Western saddles.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between 


A)  ​any loss avoided and any profit gained. 
B)  ​the actual price and the hoped-for price. 
C)  ​the contract price and the market price. 
D)  ​the current prices in the parties' locations.

E) B) and D)
F) B) and C)

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An installment contract is breached if a seller tenders any nonconforming goods. 

A) True
B) False

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Pine Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood.Under a destination contract,the seller must​ 


A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​inspect the goods before tendering their delivery. 
D)  ​place the goods into the hands of a carrier.

E) All of the above
F) None of the above

Correct Answer

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